TSMC Removing Chinese Chipmaking Tools From 2nm Production Lines Amid U.S. Pressure

As Taiwan Semiconductor Manufacturing Company (TSMC) gears up to begin full-scale 2nm production later this year, the world’s leading contract chipmaker is making a decisive shift in its supply chain strategy. According to Nikkei Asia, TSMC has started removing Chinese chipmaking equipment from its 2nm production lines to avoid potential restrictions tied to new U.S. regulations.

The U.S. Pressure: China EQUIP Act

At the center of this decision is the anticipated China EQUIP Act, a proposal that would bar semiconductor manufacturers from receiving U.S. funding if they continue to use chipmaking tools supplied by companies considered to pose national security risks. With the U.S. labeling Chinese equipment manufacturers as part of that group, TSMC’s move appears to be both preemptive and strategic, ensuring its access to subsidies and avoiding sanctions.

TSMC’s Transition Away From Chinese Tools

Historically, TSMC has incorporated Chinese-made tools from firms such as AMEC and Mattson Technology into its production flow for older process technologies. While the company initially explored phasing out these tools during the 3nm process transition, complexities at the time made the shift impractical.

Now, with 2nm technology set to roll out across multiple fabs, including TSMC’s flagship plant in Hsinchu, its new facility in Kaohsiung, and its under-construction fab in Arizona, the foundry has started replacing Chinese-sourced equipment across both its Taiwan and U.S. operations.

Beyond lithography and etching systems, TSMC is also reviewing materials and chemicals sourced from China to further reduce dependency on its largest geopolitical competitor.

TSMC’s 2nm node is a critical inflection point for the semiconductor industry, as it will underpin a range of cutting-edge chips from leading tech giants in AI, mobile, and high-performance computing. The company expects to ramp capacity at four fabs by 2026, with an estimated 60,000 wafer starts per month dedicated to 2nm production, ensuring it can meet unprecedented demand from partners such as Apple, NVIDIA, and AMD.

Whether the replacement of Chinese equipment is driven by performance considerations or by the need to appease Washington, the timing aligns with mounting U.S.-China tech tensions, where supply chain control has become as critical as technological innovation itself.

With 2nm mass production set to begin later this year, TSMC’s decision illustrates how geopolitics is reshaping the global chip supply chain. By cutting out Chinese suppliers, TSMC secures smoother access to U.S. support but also risks further deepening the divide between global tech ecosystems.

Do you think TSMC’s move is primarily about technology performance or geopolitical compliance with U.S. pressure?